PricePoint™ Q3 2014 Points to Consider in the Pricing of Outsourcing Services

13 Feb 2015
by Ricky Sundrani



PricePoint reports identify trends in the pricing of ITO and BPO deals through a comprehensive analysis of key demand-side, supply-side, and macroeconomic factors that impact pricing. Additionally, the reports include insights on contemporary outsourcing trends driven by key market developments.

Trend in blended FTE price


PricePoint Q3 2014 includes the following:

  • Assessment of pricing drivers in ITO and BPO, including:
    • Buy-side dynamics
    • Supply-side dynamics
    • Key macroeconomic factors
    • Overall impact of the drivers on pricing in Q3 2014
    • Pricing outlook for Q4 2014
  • Featured research
    • Cloud-based HR systems
    • Termination clauses relevant in outsourcing contracts

Resource Utilization


This report contains in-depth analysis of the drivers that impact pricing of ITO and BPO services in India and United States. The drivers included in the analysis are:

  • Buy-side drivers including deal size, deal volume, value mix, and new deal-renewal mix
  • Supply-side drivers including resource utilization, support costs, and service provider financial performance
  • Macroeconomic factors including operating cost inflation and foreign exchange rates

The report also contains the aggregated impact of these drivers on pricing in Q3 2014 and the outlook for Q4 2014.

The featured research section includes:

  • Differences between ERP- and cloud-based HRO solutions, key technology models available, HR transformation and cost saving options available with such models, technology adoption trends in HRO deals, and the typical pricing variation between on-premise ERP- and cloud-based implementations
  • Identifying key termination clauses relevant in outsourcing contracts, their suggested neutral content to balance buyer and provider interests, and typical range of termination fee in specific ITO and BPO contracts

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